Key Highlights

  • Jade Gas Holdings (ASX:JGH) closed at $0.058, up 7.41%, on 26 October 2026.
  • Drilling began on a third Horizontal Well at Red Lake, Mongolia's first multilateral well with five laterals.
  • Binding financing and development agreements for a US$762.5 million Phase 1 are now targeted for November.

Jade Gas Holdings Ltd (ASX:JGH) closed at $0.058, up 7.41%, in the Trading session on 26 October 2026, while the S&P/ASX 200 closed at 8,809.9, up 0.17%, and the S&P/ASX 200 Energy index gained 0.92%. Jade is an ASX-listed energy company developing the Tavan Tolgoi coal bed methane (TTCBM) project in Mongolia.

Drilling Update Dated 19 October 2026

Jade announced that drilling has commenced on its third horizontal production well at Red Lake, which will test a multilateral completion design with five lateral sidetracks. It is described as the first of its kind in Mongolia. About 3,700 m of drilling is planned, including 2,950 m in-seam in Seam IIIb, with completion expected before the end of November. The planned in-seam length is a significant increase over either previous single-lateral well.

Results will provide technical and operational data to optimise well design and support the major drilling program targeted for 2027.

Consortium Negotiations

Jade and a Chinese-led consortium have advanced negotiations on definitive agreements for the proposed Red Lake Phase 1 development, comprising 175 production wells, with consortium funding of 100% of the estimated US$762.5 million (A$1.1 billion) capital expenditure. Both parties are committed to completing remaining commercial, legal and regulatory matters. The signing timeline has been revised to reflect the transaction's complexity, with binding financing and development agreements now targeted for November.

The multilateral well targets Seam IIIb, the same seam intersected by the two existing producing wells. The multilateral approach increases contact with gas-bearing coal from a single main wellbore and has the potential to expand the well's drainage area, according to the company.

About Jade Gas

Jade Gas Holdings Limited (ACN 062 879 583) has a registered address in Kent Town, South Australia. Its Red Lake project is a coal bed methane development with two existing producing wells.

Jade's directors listed in the announcement include two executive directors and two non-executive directors, and the company is an ASX-listed entity with a registered address in Adelaide.

Risks and Catalysts on Watch

The signing timeline for the consortium agreements has been revised, and agreements are not yet binding. Well Completion is expected before the end of November.

Wrapping Up

Jade has started a multilateral well and is targeting November for binding Phase 1 agreements. The shares closed up 7.41% on 26 October.